Walrus (WAL) Staking

The native token, WAL, is essential to the Walrus network's operation. Its primary functions include covering fees for data storage services, rewarding network participants - like storage node operators and delegators who stake tokens - for securing the network, and potentially empowering holders to participate in future governance decisions regarding the protocol's direction.

WAL tokens are available for purchase through trading on several centralized cryptocurrency exchanges that have listed the asset. To purchase WAL, you should look at what platforms have trading pairs available. Sites such as CoinGecko or CoinMarketCap usually provide up-to-date market information.

You can stake your Walrus (WAL) tokens via the Walrus Staking Interface.

To stake WAL, you generally need a cryptocurrency wallet compatible with the Sui blockchain ecosystem. Importantly, besides holding the WAL you intend to stake, you will also need a small amount of SUI tokens in the same wallet to cover network transaction fees. Staking actions are performed by connecting your compatible wallet to the official Walrus Staking Interface. Always ensure you are interacting with official applications when connecting your wallet.

Staking rewards are based on a variable APR (Annual Percentage Rate) influenced by network activity and protocol parameters. You earn rewards proportionally based on the amount of WAL you stake to an eligible validator in the "Current Committee" relative to that node's total stake. Rewards are earned each epoch (approximately two weeks). Keep in mind that rewards begin accruing once your stake becomes active, which typically takes one to two epochs, depending on when you initiated the stake within the epoch cycle. Besides, rewards are only earned while your chosen storage node is part of the active “Current Committee”. Be aware that validator operators do charge a commission fee on earned rewards. Rates differ among validators, so do make sure of the specific commission of any validator you are considering prior to delegating.

Walrus protocol features a fixed maximum supply of 5 billion WAL tokens. Most of supply (60% according to reports) is reserved towards ensuring long-term ecosystem wellness, funding community building activities (which has included phased airdrops), and providing ongoing network rewards. Circulating supply at mainnet launch was around 1.25 billion WAL (25%).

Participating in WAL staking involves risks common to delegate Proof-of-Stake (dPoS) networks. These include potential 'slashing' – penalties to validators for malicious behavior or extended unavailability, affecting delegated tokens – and inherent market volatility in the price of the WAL token. Selecting experienced and reliable validators from the “Current Committee” via the official Walrus Staking Interface is crucial for optimizing rewards and mitigating risks.